Marketing creates utility for customers through the exchange of goods and services. It involves identifying customer needs, designing products to meet those needs, communicating about the products, making the products available when and where customers want them, setting prices, and ensuring customer satisfaction. The goal is to create and maintain relationships that satisfy both customer and business objectives. Marketing manages customer relationships and creates value for customers, the organization, and its stakeholders.
2. Characteristics of War
• Battlefield
• Arms and Ammunition
• Soldiers
• Strategy and Tactics
• Result
3. Characteristics of Marketing
• Marketing Territory
• Products and Services
• Human Resources
• Strategy and Tactics
• Result
4. 4
What is Marketing
• Marketing creates utility through the exchange
process
– Utility: Want-satisfying power of a good or service
• Form utility
• Time utility
• Place utility
• Ownership utility
5. 5
Four Types of Utility
Type Description Examples
Organizatio
nal
Function
Responsibl
e
Form Conversion of raw
materials and
components into
finished goods and
services
J.P. Morgan Chase checking
account; Lincoln Navigator; Ramen
Noodles (nutrition for students who
are hungry, broke, and can’t—or
won’t—cook)
Production
Time Availability of goods and
services when
consumers want them
Digital photographs; LensCrafters
eyeglass guarantee; UPS Next Day
Air
Marketing
Place Availability of goods and
services at convenient
locations
Soft-drink machines outside gas
stations; on-site day care; banks in
grocery stores
Marketing
Owner-
ship
Ability to transfer title to
goods or services from
Retail sales (in exchange for
currency or credit-card payment)
Marketing
6. 6
• How to Create Customers
– Identifying customer needs
– Designing goods and services that meet those needs
– Communicating information about those goods and
services to prospective buyers
– Making the goods or services available at times and places
that meet customers’ needs
– Pricing goods and services to reflect costs, competition,
and customers’ ability to buy
– Providing for the necessary service and follow-up to
ensure customer satisfaction after the purchase
7. 7
• A Definition of Marketing
– Marketing: the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, services,
organizations, and events to create and
maintain relationships that will satisfy individual
and organizational objectives.
– Marketing is a societal process by which
individuals and groups obtain what they
need and want through creating, offering,
and freely exchanging products and
services of value with others.
8. 8
American Marketing Association’s new official
definition of marketing released August 2004:
• Marketing is an organizational function and a set of
processes for creating, communicating and
delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders.
• Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.
9. 9
• Both definitions also identify the marketing variables
that together provide customer satisfaction
– Product
– Price
– Promotion
– Distribution
• Creating customers that want to stay with you is all
about identifying needs, providing goods and services
that meet those needs, pricing, and follow-up service.
• Marketing is the sum of all activities that take you
to a sales outlet. After that sales takes over.
